Financial News: India Factory Activity Logs Slowest Growth In 2

India Factory Activity Logs Slowest Growth In 2 Years

01/02/2026 - 01:47:00 (RTTNews)

(RTTNews) - India's manufacturing activity expanded at the weakest pace in two years amid slower rises in output and new orders, final survey data from S&P Global showed on Friday.

The HSBC manufacturing Purchasing Managers' Index dropped to 55.0 in December from 56.6 in November. The flash score was 55.7. However, a score above 50 indicates expansion in the sector.

New orders grew at the slowest pace since December, and output logged its weakest upturn in over three years. The growth in new exports was also eased to a 14-month low, while the overall increase was attributed to better demand from clients in Asia, Europe, and the Middle East.

Manufacturing employment showed only a marginal rise in December amid a general lack of pressure on operating capacities. In line with slower rises in new business, firms reduced purchasing activity, and the rate of growth retreated to a two-year low.

On the price front, input price inflation was below its long-run average and among the lowest seen in 2025. As a result, selling price inflation eased to the lowest level in nine months. The overall increase in input costs was driven by greater prices for bamboo, chemicals, glass, leather, and packaging.

"With Indian manufacturers facing less intense cost pressures than elsewhere, many will be hoping that competitive pricing can help bring in new business from other regions in the New Year," Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, said.

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